Financing Available For Some, But Not All Biopharma Companies In 2023

The biopharmaceutical industry still has a long way to go to recover from valuation declines that began in 2021, but signs of improving health in the sector in late 2022 and unchanged business fundamentals offer hope that many companies will be able to access funding to advance drug development programs and commercialize approved medicines in 2023. Observers acknowledge, however, that the trend of some firms shutting down due to dwindling cash will continue.

The key to new financing will be achieving a major clinical or regulatory milestone – or at least the promise of achieving a milestone in the near term – that may create a lot of value in the eyes of investors or potential acquirers, according to investors, advisors and executives attending the recent J.P. Morgan Healthcare Conference and the parallel Biotech Showcase in San Francisco